Don’t miss this bus: take a bet on National Express

Bus operator National Express is cheap, robust and ideally placed to ride the recovery. Matthew Partridge explains how traders can play it.

American school buses © Getty Images
The North American school bus business accounts for 30% of overall sales
(Image credit: © Getty Images)

The pandemic has wreaked havoc on public transport in the UK. During the first phase of the crisis the number of passengers collapsed as people heeded calls to stay at home. Even during the summer, as restrictions were gradually eased, people were reluctant to return to buses and trains; passenger volumes remained at a fraction of their levels a year ago. With the reinstatement of regional lockdowns now hampering a return to work, it’s no surprise that shares in many bus and train operators remain at extremely low levels.

One company that has been hit particularly badly is bus operator National Express (LSE: NEX). National Express was not only grappling with the decline in bus usage in the UK, but its school bus business in North America, which accounts for around 30% of total sales, has also been hit by the closure of schools across the United States.

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Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri